Well, another paycheck is in, and my investment dollars are in my brokerage account. So in what I’m sure is a incredible shocker to you, I’ve made another purchase.
Today, I bought 20 shares of Cummins Inc (NYSE:CMI) at $145.10 per share.
So I just did an analysis of this company on Friday. I obviously won’t rehash it all again, but here’s the link to the analysis if you missed it. I really liked what I saw. Although CMI’s not at an ideal price, I do like the dividend and the overall strength. It also gives me exposure to an industry that I won’t touch otherwise (automotive). I suspect it will perform well in the coming years. I doubt it will be a core holding due to the cyclical nature of the industry, but I don’t expect I’ll be selling any time soon.
There really hasn’t been any exciting news since Friday. They are building a new distribution center in Indiana, and apparently just launched a new engine, the QSK50. Neither of these announcements caused a spike in price; the stock actually opened in the red. Oh well, good for me!
At this point, I feel that my exposure to industrials is sufficient. With GE, CMI, and AOS, I think I’m good. There are still a few industrials on my want-to-buy list, like CAT, GPC, MMM, and a defense contractor or two, but I won’t actively be looking at most other companies in the space. Gotta keep that diversification up, and I have little to no utility, basic materials, or transportation stocks. Ah, so many things to buy, so little free cash …
This purchase will add $62.40 to my annual dividend income.
What was your most recent purchase? Would you consider investing in CMI?
Disclosure: Long CMI, GE, AOS. My portfolio page has been updated accordingly. Please read my disclaimer here before choosing to invest. Company logo image source is available here.
4 Comments
Way to go, DD. I think CMI is a great company and Ive thinking more about it all weekend. Great move. Congrats on adding $62.40 to your income stream.
cheers
R2R
Roadmap2Retire recently posted…Outlook for November 2014
Thanks! Hope you like what you see in CMI as well.
A new month and fresh new capital to deploy. That’s always fun. CMI is definitely a good buy. Do you have any other companies on your radar this month?
Henry @ Living At Home recently posted…Weekly Memoir – November 2, 2014
Yeah, it’s always my favorite part of the month. Funny you should ask! I’m actually working on a post that lists my “dream portfolio”, all the stocks I hope to own by the time I retire. And about a dozen or so are good values about now, and so are my radar for the month. Some examples include BBL, VIAB, WLK, and PCP. Expect the full post by the end of the week!